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Buying existing bar business

jdh3000jdh3000 subscriber Posts: 1
edited June 2008 in Selecting a Business
I`m about to take over a neighborhood bar, lease with option to buy.  The lease with option is a little safer than just jumping in with both feet, but it will require a some money up front.
I`m just wondering if now is a good time to start such a business, with the economy the way it is.  It is an existing business and has done pretty well in the past. I`ve worked there before and seen what the posibilities are under the right management.  I just don`t know how much liquor prices are apt to go up due to fuel prices.  I don`t know how much people will want to go out for the same reason. 
Thanks for your help with this.
 
jdh30006/14/2008 12:26 AM
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Comments

  • kcorder79kcorder79 subscriber Posts: 2
    I don`t know how much of a help I`ll be, I just would like to give you my opinion on the matter.  I know what you are saying about the economy and how people are going out a lot less.  But as for bars I think it`s still going pretty strong.  There are a lot of people that go for social interaction and a good time.  The restaurant business is slowing more and more, but I know a lot of people that are saving money from not going out to eat or doing other activities like going to the movies just to go to the bars.  I hope this helps a little, sorry I don`t have more.  Good Luck!
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  • Saber102Saber102 subscriber Posts: 2
    I`ve worked in nightclubs for several years and something I`m sure of is that in bad times, people like to have a drink and socialize....it makes them feel a little better or they can just bitch and someone can relate. In good times, people like to drink and socialize because things are good !
     
    Personally, I like the bar business. I`ve seen some bars go out of business but usually because they relied on a single big employer for customers and the employer moves or closes down.
     
    I`ve also seen bars get hurt by a change in the routing of traffic. In one instance, a new road and off ramp were built as another entrance to a major airport. The bar is in a small town and the new road and ramp directed traffic around the town. Now no one just drives thru the town on the way to anywhere.
     
    Why is the owner selling ?  Does he/she know something you don`t and wants out ? New construction, new bar down the street, big employer moving, is the area or the demographics changing ? 
     
    Hope this helps
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  • kcorder79kcorder79 subscriber Posts: 2
    Yeah I`d have to agree...why are they selling?  Maybe they just want to retire? 
    Location is everything...keep that in mind.
    Saber are you following me,  so I can kick your butt?  LOLkcorder796/26/2008 12:01 PM
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  • Saber102Saber102 subscriber Posts: 2
    Right behind you kc....Stealth Mode.
     
    Hey Jdh3000.....keep us informed.
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  • USAMerchantAccountsUSAMerchantAccounts subscriber Posts: 0
    Have you been to this bar in the past few years? if so has the average crown died down at all? Have you asked to see financial statements from years past to compare them to last year? this will probably be your best bet in judging weather or not it is a wise investment.
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  • kcorder79kcorder79 subscriber Posts: 2
    Have you been to this bar in the past few years? if so has the average crown died down at all? Have you asked to see financial statements from years past to compare them to last year? this will probably be your best bet in judging weather or not it is a wise investment.

    These are good points too!  It`s very beneficial to do research and these are a great start!
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  • Bugsey34Bugsey34 subscriber Posts: 0
    I am feeling similar doubts because I would like to open a wine store in the Boston area but think twice when I hear about the U.S. economy these days.  How can I do market research to know if there is enough market for a wine business in this economic climate?
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  • praneethpatlolapraneethpatlola subscriber Posts: 0
    I am trying to buy an existing bar in Austin, TX downtown. Can any one of you please provide a list of things to take care before buying an existing bar.
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  • infinique1infinique1 subscriber Posts: 0 Member
    It's great to buy an existing bar as you don't need to spend money on renovating it. It's important to observe the traffic and do a cash flow analysis.
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  • davemike385davemike385 subscriber Posts: 0
    Personally, I like the bar business. I`ve seen some bars go out of business but usually because they relied on a single big employer for customers and the employer moves or closes down.
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  • andyredsoxandyredsox subscriber Posts: 0
    Well, if you've seen this existing bar doing good money then why not?
    There's always an advantage and disadvantage for everything.
    Check these things and see if they'll help you in the future.
    There are still a lot of people that go for social interaction and a good time.
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